GST Team Sets Up Camp at Pushkar Fair for Tax Compliance

GST Team Sets Up Camp at Pushkar Fair for Tax Compliance

Issue: To enforce tax compliance and collect the recently introduced Goods and Services Tax (GST) on high-value horse sales at the traditional Pushkar Fair in Rajasthan.

Facts:

• The state GST department recently introduced a 5% GST on the sale of live horses.
• The GST team set up a camp at the fair in Rajasthan to monitor tax compliance.
• The GST rate on live horse sales is 5% for transactions over ₹40 lakh.
• The GST team is working with the state veterinary department, which issues the necessary sale certificate and transfer permit for every horse sold.
• Officials estimate that the maximum sale of horses has been in the range of ₹2-10 lakh, and no horse has been sold for over ₹40 lakh so far, despite social media claims of sales reaching crores.

Decision:

A team of GST officials was deployed to the Pushkar Fair, working in coordination with the veterinary department, to monitor compliance and ensure the collection of the 5% GST on high-value horse sales.

Key TakeDowns:

• Taxable Threshold: The mandatory GST levy is 5%, but only applies to horse sale transactions exceeding ₹40 lakh. Voluntary payment is allowed for lesser sales.
• Compliance Mechanism: The veterinary department’s sale certificate and transfer permit are the key documents being used by the GST team to track transactions and enforce the new tax.
• Market Reality Check: Officials are downplaying social media claims of sales reaching crores of rupees, noting that sales remain within the ₹2-10 lakh range, and few, if any, cross the ₹40 lakh GST threshold.
• Exhibition vs. Sale: The high quoted prices are often linked to the horses’ value as an exhibition or breeding asset, rather than the actual commercial sales price at the fair.